Iterative Refinement

Before I try the Dom / Non-Dom exercise, I had a question regarding this post, that has confused me.

We know that RTL Bo/Fbo, Formation Bo/Fbo or spike bar, are examples of increasing volume as price moves in the Non-Dom direction. And as such, these bars do not confirm a trend after a pt 3, subsequent non-exception increasing volume is required.

You mentioned above that todays 15:30 bar is a pennant and RTL BO on inc volume and was “Creating a change in dominance” in the process.

Is there something different about a change in dominance versus confirming the trend after a pt3?

Thanks,
Phineas

 

Thank you so very much Spyder.

 

drill 1

 

drill 2

 

Volume which confirms a point three occurs in the same 'direction' as the Point Three. In other words, a point Three Up Traverse has increasing black Volume, and a Point Three Down Traverse confirms with increasing red volume. A change in dominance develops when Volume, which once signified non-dominance, changes to dominant. Most frequently (but not exclusively) seen as Price crosses a Right Trend Line or Price moving from Point One to Point Two.

- Spydertrader

 

Have'n some fun with drill 1

 

Got it, Thank-you.
Phineas

 

Drill One

Edit: ignore the text on the chart. The bar with the arrow is red Dominant.

 

Drill Two

 

drill 1